When is the Azal Coffee mobile application and technology fee due each month?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
marketing fund or terminate the marketing fund (or reinstate the marketing fund if it is terminated).
4.4 Mobile Application and Technology Fee.
You must pay us a mobile application and technology fee, which amount is currently fifty dollars ($50.00) per month. The mobile application and technology fee must be paid to us on the first business day of each month in the manner specified in Section 4.13. We reserve the right to increase the mobile application and technology fee to up to three hundred dollars ($300.00) per month upon written notice to you. The mobile application and technology fee will be used by us for expenses relating to the administration and maintenance of technology used in our Franchise System. The mobile application and technology fee is not refundable. Although you must pay the mobile application and technology fee to us, you will still be responsible for any license fees and the expense of maintenance and updates, including service contracts, relating to point of sale ("POS") computer system software and other technology used in the Franchise Business. In addition to the mobile application and technology fee, we may collect from you and pay to third parties initial set-up and ongoing licensing fees for any Franchise Technology provided by third parties. We may also charge you a fee to manage any Franchise Technology provided by third parties, which shall be in addition to the mobile application and technology fee. These fees must be paid in the manner specified in Section 4.13 by the 1st day of each month (or at such other times as we may specify). We do not currently, but reserve the right to require that you pay us or our affiliates an administrative fee for administering franchise and marketing programs for the Franchise System. We reserve the right to increase the administrative fee in our sole and complete discretion. The administrative fee must be paid in the matter spec
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the mobile application and technology fee is due on the first business day of each month. The current fee is $50.00 per month, but Azal Coffee retains the right to increase this fee up to $300.00 per month with written notice. This fee covers the administration and maintenance of technology used within the Azal Coffee franchise system.
Even though the franchisee pays the mobile application and technology fee, they are still responsible for any license fees and the expense of maintenance and updates, including service contracts, relating to point of sale ("POS") computer system software and other technology used in the Franchise Business. Azal Coffee may also collect and pay to third parties initial set-up and ongoing licensing fees for any Franchise Technology provided by third parties. They may also charge a fee to manage any Franchise Technology provided by third parties, which is in addition to the mobile application and technology fee.
All payments, including the mobile application and technology fee, must be made via electronic funds transfer. Azal Coffee can specify if payments are to be made daily, weekly, or at another interval instead of monthly. The franchisee must authorize Azal Coffee to initiate these electronic fund transfers and agrees not to terminate the authorization or close the bank account without prior written notice. This ensures that Azal Coffee can collect the necessary fees in a timely and consistent manner.
Prospective franchisees should be aware that the mobile application and technology fee is non-refundable. They should also factor in potential increases to this fee, up to $300 per month, when assessing the financial viability of the franchise. Additionally, franchisees need to budget for separate expenses related to POS systems and other technology, as these are not covered by the mobile application and technology fee.